The majority of Junior Market stocks gained at the close of trading on Monday as 22 securities changing hands. The prices of 9 stocks rose, 7 declined and 6 traded firm, with the market Index rising 7.61 points to end at 3,132.76.
The market closed with 4,968,253 units valued at $16,371,552 changing hands compared to 1,716,953 units valued at $8,024,988 on Friday. KLE Group accounted for 46 percent of trading volume and recently listed Stationery and Office 19 percent.
The Junior Trading ended with an average of 225,830 units for an average of $744,161 in contrast to 85,848 units for an average of $401,249 on Friday. The average volume and value for the month to date amounts to 315,269 units valued at $1,622,404, compared to 322,723 units valued at $1,695,591 previously. In contrast, July closed with average of 536,395 units at $1,905,441 for each security traded.
Trading ended with the market sentiments looking mixed for Tuesday’s activity, as 7 stocks ended with bids higher than their last selling prices and 6 with lower offers.
At the close of the market, the last traded prices of stocks trading and the volume of securities changing hands are: AMG Packaging ending with 11,050 shares at $3.50, Blue Power traded 1,757 shares at $40, CAC 2000 finished with 20,800 shares at $7.85, Cargo Handlers lost 50 cents and settled at $10.50 with 15,000 shares, Caribbean Cream dropped 74 cents, to end at $6 with 28,405 stock units, Caribbean Producers rose 1 cent and settled at $3.61 with 116,193 shares, Consolidated Bakeries closed at $2.15 with 626,000 shares, Derrimon Trading added 10 cents and finished trading at $7.10 with 10,800 shares, Dolphin Cove ended with a loss of 9 cents, at $17.41 with 14,197 units, Express Catering closing 2 cents higher to settle at $5.25 with 320,722 shares, Honey Bun ending 20 cents higher at $5 with 5,904 shares, Jamaican Teas settling at $5 with 55,118 shares, Jetcon Corporation climbing 20 cents higher to $5.70 with 95,850 shares, KLE Group finished trading 2,305,004 shares, 35 cents higher to $2.45, Knutsford Express concluded trading with a loss of 3 cents, traded at $14.97 with just 190 units. Lasco Distributors concluded trading 30 cents higher, to $7 with 206,005 shares, Lasco Financial jumped 55 cents higher to settle at $3.95 with 106,434 shares, Lasco Manufacturing lost 41 cents to finish at $4.33 with 20,206 shares, Main Event inched 8 cents higher to $5.08 with 26,603 shares, Paramount Trading finished at $2.94 with 15,000 shares, Stationery and Office declined 29 cents, to $4.20 with 961,015 shares, Sweet River traded just 863 units at $3.52 and tTech with a loss of 90 cents, settled at $6 with 6,000 shares changing hands.
2 Jamaican stocks rise 2 Trini fall
Trading on the Trinidad & Tobago Stock Exchange on Monday resulted in 13 securities changing hands compared to 11 on Friday with the quantity of shares trading rising but with a lower value than on Friday.
The market closed with 2 stocks advancing, 2 declining and 9 holding firm as 538,622 shares traded at a value of $3,830,623 compared to Friday’s trades of 419,313 valued at $7,180,253.
The Composite Index gained 0.33 points to 1,228.65, the All T&T Index declined 0.10 points to 1,792.25 and the Cross Listed Index added 0.10 points to 89.23 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| Two Jamaican based companies closed trading with the last traded price being higher than at the close on Friday. NCB Financial Group added 1 cent to close at a 52 weeks’ high of $4.51 with 3,500 units and Scotia Investments exchanged 123,646 shares with a rise of 5 cents to $2.25.
Losses| Stocks trading, with the last prices falling and volumes changing hands were Angostura Holdings with a loss of 1 cent at $15 with 125,000 shares valued at $1,875,249 and National Flour Mills losing 3 cents to end at $2.10 with 12,192 shares.
Firm Trades| Stocks changing hands with the price of the last trade remaining unchanged are Clico Investment with 22,925 units valued at $481,448 at $21, First Citizens exchanging 763 shares at $31.67,Grace Kennedy traded 120,456 shares at $2.85. JMMB Group closing at $1.20 with 100,000 shares, Massy Holdings had just 37 units changing hands at $48.95, Republic Financial Holdings swapped 500 units at $101.90, Scotiabank closed with an exchange of 1,800 shares at $58.02, Trinidad Cement remained at $4.14 trading 7,311 shares and Trinidad & Tobago NGL exchanged 20,492 shares at $23.45 valued at $480,537.
JMMB could continue higher
Based on the trading activity for the past few days there seems to be increased interest in JMMB Group shares with a sharply declining supply being offered after the company released its first quarter results and announced that they have commenced commercial banking operations in Jamaica.
On Friday the price closed at $21.50 with 782,460 shares traded, after it traded at $23 in the morning session as supply totally dried up at one stage when only a small volume was on offer at $29, the first this has happened in a long time. At the close less than 240,000 units were offered for sales, with most quoted at $22.50. The group reported pretax profit rising to $995 million from $857 million in 2016 but profit after tax just inched up to $613 million from $590 in 2016.
Cable and Wireless came in for buying but sellers were just as interest in selling, in the end supply on the market has been shrinking. The stock could well see side-ways movement during the week, don’t be surprised if the price moves up as supplies around last week’s closing price recedes. NCB Financial Group has seen the price in Trinidad coming close to the Jamaican price on Friday, with demand still strong in that market and no stock on offer. The closing bid in TTSE suggests upward price movement can be expected. Supply in Jamaica is not great, it’s just that buyers are taking their time to acquire and could well be trying to hold out until close to the release of the full year’s results in early November. There was spirited buying of Barita Investments on Thursday gone, with 163,100 units being snapped up aggressively. There was no follow through of such aggression on Friday. It is anyone’s guess where this one will go, in the days ahead, but it is worth watching. Berger Paints pulled back to $14 during the week, with no announcement from its new parent company about the minority holdings. Ansa McAl announced that they would be making a submission about the 20 percent minority holdings in the Trinidad sister company, with no comments about the operations in Jamaica.
There is a fair bit of swing in the price of Stationery and Office Supplies with selling coming in during the week, but with buying more subdued than before. Investors can probably expect the price to swing between $4 and $5 for a while. The price could even falling into the $3 to $4 range depending on how fast sellers want to exit. At least that is what the bids and offers suggest, unless there are some increased buying in the week ahead.
Jamaican Teas after reporting nine months results with increased earnings per share over 2016, traded as high as $5.30 during the day but closed at $5 as increased interest was visible for the stock, suggesting that the price could rise further. Jetcon Corporation continues to attract buying interest after posting doubling of profits for the first six months of 2017 and traded as high as $5.70 before pulling back to $5.50 at the close on Friday, with bids to buy in line with the closing price. Paramount Trading came in for some buying with the price recovering from its fall to $2.50 recently after the company stated that they were I the process of constructing the Lubricant plant with operations to commence later this year. Currently supply below $4 is scanty.
Consolidated Bakeries reported a loss in its June quarter leading to a fall in the stock price. Selling continues with more than 660,000 units on offer at $2.15 and weak bids. Further decline is to be expected.
Profits surge at Kingston Wharves
Revenues at Kingston Wharves jumped 19 percent or $467 million over the corresponding period in 2016 to $2.9 billion for the six months to June 2017 and 22 percent for the June quarter to $1.55 billion.
The strong revenue growth resulted in profit before taxation climbing 32 percent from $650 million in 2016 to $857 million for the half year and an even more impressive 40 percent in the quarter, to $454 million. Net profit attributable to shareholders increased 34 percent, moving by $187 million to $742 million over the comparable period in 2016 for the six months and a strong 46 percent in the latest quarter, to $414 million. The results produced earnings per stock unit of 29 cents for the quarter and 52 cents for the half year.
The strong quarterly performance comes against the background of a sharp fall in other operating income from $105 million to just $17 million, partially offset by finance costs declining to $31 million from $67 million in 2016 June quarter.
The Terminal Operations Division delivered revenues of $2.3 billion, a 19 percent increase over the corresponding period in 2016. Divisional operating profits increased by 50 percent from $485 million to $727 million. The key drivers include growth in container handling, motor units and break bulk operations amongst other areas. “Total revenues earned in the Logistics and Ancillary division amounted to $676 million, with operating profits totaling $192 million, an increase of 15 percent and 6 percent respectively, over the corresponding period in 2016 due primarily to continuous expansion of KWL’s service offering and a widening of its customer base, as well as improved operational efficiencies gained through increased use of technology to manage the warehousing operations and security services,” the chairman Jeffrey Hall, the company’s chairman reported to shareholders.
Administrative expenses rose much faster than revenues at 30 percent for the quarter, to $290 million and 18 percent for the six months to $543 million.
The Group’s balance sheet reflects short term investments and cash of $3.1 billion, shareholders’ equity of $19 billion and borrowed funds amounting to $2.4 billion.
The growth for the half year has been very strong suggesting that IC Insider.com’s forecast of $1.13 for the full year is on track and may even be exceeded if the second quarter pace of growth continues. The stock traded at on the Jamaica Stock Exchange on Friday gone at $30, resulting in one of the highest valued stock on the market at a PE of 27 times current year’s earnings. If the growth continues at the current pace into 2018 then the current value would be acceptable as the valuation would fall under 20 times 2018 earnings.
Kingston Wharves will shortly launch new logistics facilities for the warehousing of general cargo, and the storage of bulk and automotive cargo for domestic and transshipment markets and have already had acceptance from potential customers. The location of this is slated for lands adjacent to the Tinson Pen airport in Kingston.
Kingston Wharves pumps up JP profits
Jamaica Producers made improvement in its operations, with strong gains in operating profit, helped by the consolidation of Kingston Wharves (KW), but importantly, gains from its other core business.
The company reported profit attributable to shareholders of $158 million for the second quarter and $251 million for the half year to June, 2017.
The results flowed from revenues of $7.4 billion up from $4.6 billion in 2016 for the half year and $4 billion for the quarter, up from $2.4 billion in 2016. In 2016 the group’s share of KW was treated as an associate as such the revenues for 2016 does not include that for wharf as is the case in 2017.
Closer look at the numbers, shows that while profit jumped sharply, the subsidiary Kingston Wharves accounted for $485 million of the $546 million profit generated from operations in the June quarter and $918 million of the $981 million generated for the half year. Revenues from KW amounts to $1.55 billion for the quarter and $2.94 billion for the six months, less than 40 percent of JP group’s revenues.
The numbers suggest there is much work to be done, to knock Producers as the group is called, into shape. Relocation of the head office from rented property to an existing property owned by them and serving other group companies and the consolidation of the Tortuga Rum Cake operations in Kingston with modern equipment and other changes, will help to improve profitability of the core business.
The results for 2017 translate to 14 cents per share for the quarter and 22 cents for the half year and should end around 50 cents for the year. With a stock price of $13.75 the market value is a very rich 29 times earnings against a market average of just over 13. The stock which traded as high as $22 earlier this year has been slowly correcting and seems headed lower as investors get a clearer picture of the likely full year’s earnings.
The group’s main activities are port terminal operations, logistics, the cultivation, marketing and distribution of fresh produce, food and juice manufacturing, land management and the holding of investments.
Forex inflows drop during current week
Foreign exchange trading this week resulted in total inflows being less than in the previous week and ended at US$196 million versus US$222 million previously while outflows ended at US$160 million versus US$169 million.
Trading in the Jamaican foreign exchange market on Friday ended in inflows remaining low compared to the first three days of the week, but climbed above inflows of US$32.94 million on Thursday to US$35.35 million. Outflows amounted to US$30.09 million compared to US$32.74 million of all currencies previously.
In USA dollar trading, inflows ended at US$28.90 million versus US$27.59 million on Thursday with outflows of US$26.16 million compared to US$26.19 million.
The value of the Jamaican dollar gained modestly in value against the US dollar, with the selling rate ending at J$128.50 from J$128.51 previously. Dealers bought the US currency at an average of J$127.11, versus J$127.15 on Thursday.
The selling rate for the Canadian dollar rose to J$102.50 from J$101.69 at the close on Thursday while the British Pound was more costly, with J$166.16 buying the British currency versus J$164.96 and the euro, receded in value against the Jamaican dollar, with it taking J$149.50 to buy the European common currency, versus J$149.92 previously.